Brief⁽¹⁾

H.B. 2266 amends one section of Kansas insurance law applicable to the conversion of a mutual insurance company into a domestic stock company.

The bill clarifies that the phrase "at least 51% of the voting stock" in existing law means "shares of the capital stock which carry the right to cast a majority of the votes entitled to be cast by all of the outstanding shares of capital stock of the company for the election of directors and on all other matters submitted to a vote of the shareholders of the company."

Background

H.B. 2266 was requested by AmVestors Financial Corporation whose representative explained that the change is technical and consistent with how the law was followed in a recent conversion. He said that, as his client is owned by an Iowa mutual holding company considering a move to Kansas, the change in Kansas law to be identical to the Iowa law will remove any potential conflict in making the considered move.

The Insurance Commissioner asked the Committee to make no change in the law.

A fiscal impact statement on the bill is not available at this time.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.